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Investments & Expansions Were the Most Preferred Strategies among the Major Players in the Breathable Films Market between 2013 and 2016

Breathable films are thin films with high breathability that are manufactured using various polymers such as polyethylene, polypropylene, polyurethane, and other thermoplastic elastomers along with mineral fillers. The presence of mineral fillers gives breathable films a microporous structure, which allows the vapor to pass through while provide a barrier to the liquid. Breathable films are mainly used in applications including hygiene, medical, construction, industrial, and food packaging among others.

The global market size of breathable films is projected to reach USD 3.21 Billion by 2021 at a CAGR of 7.5% between 2016 and 2021. Rising awareness about health & hygiene in developing countries and increasing usage of breathable films in premium hygiene products in order to get better comfort, breathability, and absorbency are likely to drive this market. As baby diaper accounts for the largest portion of hygiene applications, high birth rate in developing countries is expected to fuel the breathable films market in baby diapers. In addition, the aging population coupled with high per capita GDP in the developed countries such as Japan, Italy, Greece, Germany, and the U.S. will drive the breathable films market as well in adult diapers. Asia-Pacific provides immense opportunities to the manufacturers in the global breathable films market due to the high birth rate and increase in per capita GDP in countries such as China, India, and Indonesia.

Investments & expansions were the most preferred strategies among the major players in the breathable films market between 2013 and 2016. Investments & expansions accounted for a share of 70% of all the development strategies adopted by the market players. The leading market players are focusing on expanding their production capabilities and distribution networks in order to cater to the rapid increase in demand for breathable films. The companies also adopted the strategies such as agreements & collaborations, mergers & acquisitions, and new product developments. These strategies together accounted for a share of 30% of the overall growth strategies adopted by the players in the breathable films market between 2013 and 2016. All the leading players in the industry are focusing on the hygiene segment, which accounts for the largest share and will be driving the overall market. The medical segment is witnessing double-digit growth. Companies such as Clopay Plastic Products Co., Inc. (U.S.), RKW Group (Germany), Mitsui Hygiene Materials (Thailand) Ltd., and Toray International; Inc. (Japan) are actively investing in production capacities and expanding in Asia-Pacific countries, especially South East Asian countries.

The strategy of mergers & acquisitions accounted for a share of 16%, between 2013 and 2016, of the overall strategic developments in the breathable films market. Companies adopted this strategy to strengthen their distribution network and to extend their reach to customers. The RKW Group (Germany) was the leader in adopting the strategy of mergers & acquisitions.

The RKW Group is a family-owned business and is one of the leading manufacturers of breathing films solutions. The company provides products for various end-use industries such as hygiene, beverage, and packaging industries. The company also manufactures films and nonwovens for medical applications as well in the construction and chemical sectors. The company has offices in more than 20 locations worldwide and many manufacturing plants all over the world that process more than 450,000 tons of plastic materials.

The company manufactures and sells breathable films for hygiene products such as sanitary napkins and disposable baby & adult diapers as well as medical supplies such as hygienic absorbent sheets and pads for medical use through its subsidiary Mitsui Hygiene Materials (Thailand) Company Limited. It is one of the leading players in the breathable films market in East & Southeast Asia. The company is expanding the breathable films manufacturing capacity by 4,200 tons in Thailand. The commercial operation will start from January 2017.